Qatar's cost of living, based on consumer price index (CPI), fell 3.41% year-on-year this June; reflecting the weakened demand, especially for recreation, transport and clothing, owing to the pandemic, according to the Planning and Statistics Authority (PSA).
Nevertheless, the country's CPI inflation rose by a marginal 0.26% in the review period month-on-month, mainly on account of higher prices for food and beverages, said the figures released by the PSA.
Before the onslaught of the pandemic, the International Monetary Fund, in its Article IV consultation with Qatar, said inflation is projected to peak at 3.7% in 2020 with the introduction of a value added tax, but converge to 2% in the medium term.
The index of recreation and culture, which has a 11.13% weight in the CPI basket, plunged 16.17% and 6.06% year-on-year and month-on-month respectively in June this year.
The index of transport, which has a 14.59% weight, tanked 4.56% on a yearly basis; even as it grew 3.22% on a monthly basis this June. The sector has the direct linkage to the dismantling of administered prices in petrol and diesel.
In June 2020, the price of super, premium gasoline and diesel witnessed a year-on-year 40%, 41% and 43% plunge respectively; even as they remained unchanged month-on-month.
The index of clothing and footwear, which has a 5.58% weight in the CPI basket, shrank 4.85% and 0.62% year-on-year and month-on-month respectively in June 2020.
The index of housing, water, electricity and other fuels – with a weight of 21.17% in the CPI basket – saw a 3.62% contraction on a yearly basis; whereas it treaded a flat path month-on-month this June.
The CPI of June 2020 excluding “housing, water, electricity, gas and other fuels, fell 3.26% year-on-year; while it rose 0.33% on monthly basis.
Communication, which carries a 5.23% weight, saw its group index shrank 3.26% on yearly basis, but treaded a flat course on monthly basis in June 2020.
Food and beverages, which has a weight of 13.45% in the CPI basket, witnessed a 0.7% shrinkage year-on-year; while it shot up 2.52% on a monthly basis in June 2020.
In the case of furniture and household equipment, which has a 7.88% weight in the CPI basket, the index was down 0.39% on yearly basis but was up 0.06% month-on-month in June this year.
However, the tobacco index, which has a 0.28% weight, soared 4.41% year-on-year but unchanged on monthly basis in the review period.
Miscellaneous goods and services, with a 5.65% weight, saw its index surge 2.5% and 0.74% year-on-year and month-on-month respectively in June 2020.
The index of health, which carries 2.65% weight, expanded 1.19% on yearly basis, but was flat on monthly basis in June this year.
Education, with a 5.78% weight, saw its index gain 1.19% year-on-year and by a marginal 0.01% on a monthly basis this June.
The index of restaurants and hotels, which has a 6.61% weight, grew 0.35% year-on-year; while it was unchanged month-on-month in the review period.